Global Markets:
- Asian Stock Markets : Nikkei down 0.16%, Shanghai Composite down 2.20%, Hang Seng down 0.22%, ASX up 1.11%
- Commodities : Gold at $1235.00 (-0.06%), Silver at $14.67 (-0.20%), Brent Oil at $77.25 (-0.53%), WTI Oil at $67.28 (-0.46%)
- Rates : US 10-year yield at 3.074, UK 10-year yield at 1.388, Germany 10-year yield at 0.366
News & Data:
- (USD) Revised UoM Consumer Sentiment 98.6 vs 98.9 expected
- (USD) Advance GDP Price Index q/q 1.70% vs 2.10% expected
- (USD) Advance GDP q/q 3.50% vs 3.30% expected
- Japan joins to shape China’s Belt and Road
- Dowtown In Aussie New Home Sales Pauses in September 2018
- Japan Sep Retail Sales Climb on Higher Food, Fuel Prices
CFTC Positioning Data:
- EUR short 30K vs 29K short last week. Shorts increased by 1K
- GBP short 47K vs 50K short last week. Shorts trimmed by 3K
- JPY short 93K vs 101K short last week. Shorts trimmed by 8K
- CHF short 17K vs 13K short last week. shorts increased by 4K
- CAD short 7k vs 11k short last week. Shorts trimmed by 4K
- AUD short 70k vs 71k short last week. Shorts trimmed by 1K
- NZD short 33K vs 35K short last week. Shorts trimmed by 2K
Markets Update:
Asian shares barely managed to hold firm on Monday after a tumultuous week for global equities, with U.S. stock futures turning down and Chinese markets deep in the red on fresh signs of cooling in the world’s second-biggest economy. The markets had opened mostly higher despite the weak cues from Wall Street Friday amid worries about corporate earnings results and global economic growth but has since given up most of the gains to trade mixed.
Australia’s ASX 200 gained 1.1% – higher commodity prices gave a boost to resources stocks. Mining, health care and banking stocks are among the major gainers. Shanghai Composite tumbled 2.2 percent following disappointing earnings from the country’s top liquor maker Kweichow Moutai.
The Shenzhen composite fell 1.9 percent by the end of the morning session. Hong Kong's Hang Seng index was lower by about 0.22 percent, after trading in positive territory earlier. In Japan, the Nikkei 225 was trading at 0.16 percent lower while the Topix index slipped by 0.22 percent.South Korea's Kospi also trading lower.
Analysts warn of more volatility after heavy losses across major equity indices left investors with negative returns for the year. Bears are on the rise, with some indices already in official correction territory amid heightened worries over corporate earnings and global growth. Among emerging markets, Brazilian-linked stocks got a lift from the South American country’s presidential election, which saw the victory of far-right candidate Jair Bolsonaro whose campaign centred on promises to clean up politics and crack down on crime.
The safe-haven Japanese yen has benefited from the global sell-off in riskier assets as investors unwound carry trade exposures. The euro hovered near a more than two-month low to hold at $1.1390. The dollar index rose 0.1 percent to 96.470 after gaining 0.7 percent last week. In commodities, oil pared early gains as well tracking Wall Street futures.
Upcoming Events:
Monday, October 29, 2018
- 10:30 AM GMT – (GBP) Net Lending to Individuals m/m
- 01:30 PM GMT – (USD) Core PCE Price Index m/m
- 01:30 PM GMT – (USD) Personal Spending m/m
Tuesday, October 30, 2018
- 01:30 AM GMT – (AUD) Building Approvals m/m
- 03:10 AM GMT – (AUD) RBA Assist Gov Bullock Speaks
- All Day – (EUR) German Prelim CPI m/m
- 09:00 AM GMT – (CHF) KOF Economic Barometer
- Tentative – (EUR) EU Economic Forecasts
- 11:00 AM GMT – (EUR) Prelim Flash GDP q/q
- 03:00 PM GMT – (USD) CB Consumer Confidence
- 08:30 PM GMT – (CAD) BOC Gov Poloz Speaks
Wednesday, October 31, 2018
- 01:30 AM GMT – (AUD) CPI q/q
- 01:30 AM GMT – (AUD) Trimmed Mean CPI q/q
- 02:00 AM GMT – (CNY) Manufacturing PMI
- 02:00 AM GMT – (CNY) Non-Manufacturing PMI
- Tentative – (JPY) Monetary Policy Statement
- Tentative – (JPY) BOJ Policy Rate
- Tentative – (JPY) BOJ Outlook Report
- Tentative – (JPY) BOJ Press Conference
- 09:00 AM GMT – (EUR) Spanish Flash GDP q/q
- 11:00 AM GMT – (EUR) CPI Flash Estimate y/y
- 11:00 AM GMT – (EUR) Core CPI Flash Estimate y/y
- 01:15 PM GMT – (USD) ADP Non-Farm Employment Change
- 01:30 PM GMT – (CAD) GDP m/m
- 01:30 PM GMT – (CAD) RMPI m/m
- 01:30 PM GMT – (USD) Employment Cost Index q/q
- 03:30 PM GMT – (USD) Crude Oil Inventories
- 06:15 PM GMT – (CHF) SNB Chairman Jordan Speaks
- 09:15 PM GMT – (CAD) BOC Gov Poloz Speaks
Thursday, November 01, 2018
- 01:30 AM GMT – (AUD) Trade Balance
- 10:30 AM GMT – (GBP) Manufacturing PMI
- 01:00 PM GMT – (GBP) BOE Inflation Report
- 01:00 PM GMT – (GBP) MPC Official Bank Rate Votes
- 01:00 PM GMT – (GBP) Monetary Policy Summary
- 01:00 PM GMT – (GBP) Official Bank Rate
- 01:00 PM GMT – (GBP) Asset Purchase Facility
- 01:00 PM GMT – (GBP) MPC Asset Purchase Facility Votes
- 01:30 PM GMT – (GBP) BOE Gov Carney Speaks
- 03:00 PM GMT – (USD) ISM Manufacturing PMI
Friday, November 02, 2018
- 01:00 AM GMT – (NZD) ANZ Business Confidence
- 01:30 AM GMT – (AUD) Retail Sales m/m
- 10:30 AM GMT – (GBP) Construction PMI
- 01:30 PM GMT – (CAD) Employment Change
- 01:30 PM GMT – (CAD) Unemployment Rate
- 01:30 PM GMT – (CAD) Trade Balance
- 01:30 PM GMT – (USD) Average Hourly Earnings m/m
- 01:30 PM GMT – (USD) Non-Farm Employment Change
- 01:30 PM GMT – (USD) Unemployment Rate
